Sara Lee swap draws a crowd

Sara Lee Corp. shareholders reacted enthusiastically to the Chicago-based food and clothing maker's offering of its Coach Inc. property, eagerly swapping 41.4 million company shares in exchange for a stake in the leather goods unit.

Investors, who tendered 88.1 million shares, oversubscribed on the company's original offer to swap 41.4 million Sara Lee shares for 35 million Coach shares. Specifically, for each Sara Lee share owned, investors will receive a 0.85 share of Coach stock.

The transaction could be worth up to $1 billion to Sara Lee, which is shedding its remaining 80% stake in Coach as part of a broader plan to focus on core businesses. The company already sold off 20% of Coach in an October initial public offering.

Despite the overwhelming response, Sara Lee will accept only half of the tendered shares, officials said. But any investor who participated in the exchange by the April 5 deadline will have at least some of their shares swapped, a spokeswoman said.

Last year, Sara Lee said it will concentrate on its food and beverage, household products and intimates and underwear businesses. The Coach IPO and the sale last month of its Champion Europe unit are part of that strategy.

After the exchange offer, Sara Lee will have some 787 million shares outstanding, the company said.